Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
 9 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net loss $ (2,834,820) $ (8,722,274) $ (11,579,406)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation       5,358
Amortization of intangible asset       381
Amortization of prepaid expenses 95,034 140,601 19,158
Amortization of debt issuance costs 4,689 6,252 5,731
Amortization of debt discount 334,813 623,667 392,292
Impaiment of mineral rights 500,000 500,000   
Impairment loss       1,216,295
Loss on abandonment of assets       39,927
Gain on disposal of discontinued operations       (424,131)
Derivative liability expense       3,260,076
Change in fair value of derivative liabilities 680,940 6,148,651 2,490,252
Stock based consulting 130,000 130,000 2,687,500
Stock based compensation expense 332,132 332,132 975,000
Contributed services       10,000
Gain from settlement of debt    (28,244)   
(Increase) Decrease in:      
Interest receivable       (2,157)
Prepaid expense (20,804) (95,004) (182,200)
Deposits       (8,509)
Assets of discontinued operations         
Increase (Decrease) in:      
Accounts payable and accrued expenses 186,732 225,213 15,504
Liabilities of discontinued operations    (15,000) 272,868
Net cash used in operating activities (591,284) (754,006) (806,061)
Cash flows from investing activities:      
Cash acquired in acquisition       5,057
Cash used in acquisition       (110,000)
Payment of leasehold improvement       (13,325)
Purchase of equipment       (23,451)
Investment in note receivable       (171,100)
Net cash used in investing activities       (312,819)
Cash flows from financing activities:      
Proceeds from issuance of common stock 550,000 550,000 75,000
Proceeds from exercise of stock warrants    125,000   
Net proceeds from debentures       937,500
Proceeds from related party advances       200,433
Net cash provided by financing activities 550,000 675,000 1,212,933
Net increase (decrease) in cash (41,284) (79,006) 94,053
Cash, beginning of period 56,331 94,053   
Cash, end of year 15,047 15,047 94,053
Cash paid during the period for:      
Interest         
Income Taxes         
Supplemental disclosure of non-cash investing and financing activities:      
Issuance of common stock in connection with acquisition of business       800,000
Contributed capital in connection with an extinguishment of a convertible debenture 31,666 95,000 75,000
Issuance of common stock for convertible debentures 450,000 700,000   
Issuance of common stock for accrued director's fees    10,000   
Reclassification of derivative liability to equity 9,662,196 12,857,466   
Issuance of common stock in connection with the transfer and conveyance of certain silver mining claim $ 500,000 $ 500,000